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Australia's mental health plan 'not fit for purpose' and must be re-designed, new report finds
Australia's national plan to improve mental health and prevent suicide is "not fit for purpose" and needs to be re-written, according to a new report by the Productivity Commission.
The commission has been reviewing the National Mental Health and Suicide Prevention Agreement which sets out the shared commitments between the federal government and state and territory governments to improve the mental health of Australians.
The commission has now released an interim report which revealed the national agreement was "fundamentally flawed" and made no real improvements to the mental health system since it was signed in 2022.
The agreement aims to:
It aims to meet these objective by funding services such as:
Commissioner Angela Jackson said major change would be impossible under the current agreement as its outcomes, such as "reforming the mental health system" were too broad and not easily measurable.
Australia is facing a mental health crisis as more people need care for more complex conditions but can't get the help they need due to workforce shortages and a lack of mental health beds in hospitals.
Measures of mental health and suicide rates have not improved in recent years, according to the report.
More troubling, the suicide rate of Aboriginal and Torres Strait Islander people worsened between 2018 and 2023.
Co-commissioner and Gungarri man Selwyn Button said there were a raft of initiatives that weren't connected to each other, thus creating a fragmented system, and early intervention to prevent suicide needed improving.
"There is still stigma attached with respect to having conversations with a clinician about suicide," he said.
The commission said the agreement made certain commitments but didn't dedicate funding to achieve those aims.
For example, it sets out a strategy to close the health gap for Aboriginal and Torres Strait Islander people but there was no specific funding allocated to do this.
"This really needs to be prioritised … and we have the expertise, we just need to get the right people at the table," Mr Button said.
Dr Clinton Schultz, a Gamilaroi man and director of First Nations strategy at the Black Dog Institute said any national agreement needed to link research to the real world.
"We're generating strong evidence around what works – particularly in novel treatments — but there's still no mechanism to bring that innovation into the public system. Until we bridge these gaps, we'll keep seeing missed opportunities to support our mob in meaningful ways."
Ms Jackson said another key priority was getting funding for psychosocial support for people who don't qualify for the National Disability Insurance Scheme (NDIS).
Psychosocial support is non-clinical help including connecting people with the right services and building daily living skills.
Funding for that was withdrawn after the NDIS was introduced, which left around 500,000 people without support.
"Obviously the NDIS has led to significant change for people with disability but for those outside the scheme there's been a real reduction in supports and this is a matter of urgency," Ms Jackson said.
The commission recommended the current agreement, which is due to expire in July 2026, be extended to 2027 to give the government time to create a new agreement that is co-designed with consumers, carers and service providers.
"The new agreement must have measurable outcomes and greater accountability … it's really important everyone understands what's improving and what's not," Ms Jackson said.
Health Minister Mark Butler said the review highlighted structural issues with the agreement and it was "essential we get this right".
"That is why the treasurer, and I commissioned this review in the first place, to get independent advice to inform our next agreement," he said.
Mr Butler said two weeks ago the state and territory health ministers agreed that psychosocial, workforce and youth mental health would be priorities in the next national agreement.
The Productivity Commission is now accepting more public submissions before preparing a final report later this year.
